The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Baidu, Inc. (“Baidu” or the “Company”) (NASDAQ: BIDU) securities during the period from March 16, 2019 through April 7, 2020 (the “Class Period”). Investors have until June 22, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Baidu’s feed services were not in compliance with applicable Chinese regulatory standards; (ii) the foregoing noncompliance subjected the Company to a heightened risk of regulatory enforcement, including the removal or suspension of certain of Baidu’s services and products; and (iii) accordingly, the Company’s revenues derived from online marketing services were unlikely to be sustainable.
On April 7, 2020, post-market, China’s internet regulator, the Cyberspace Administration of China (“CAC”), ordered Baidu to clean up improper information and halt the spread of “low-brow content.” Specifically, the CAC stated that search engine Baidu’s content review on some of its news feed channels is not “strict,” “exerted bad influence to the society,”
and violated relevant Chinese laws and regulations. On this news, Baidu’s share price fell $4.46 per share, or 4.38%, to close at $97.33 on April 8, 2020.
On April 9, 2020, Baidu issued a statement entitled “Baidu Takes Measures to Comply with Government Directives,” confirming that it had “suspended updating its content on certain newsfeeds channels within Baidu App and conduct maintenance, beginning from April 8, 2020” and stating that it “expects that the suspension may have impact on the marketing services revenue related to the suspended channels.”
If you acquired Baidu securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.